Geopolitics & Crude Oil to Shape Stock Markets This Week
By Market Desk
Geopolitical tensions, especially US-Iran conflict and crude oil prices, are set to drive stock markets. Investors await Fed comments & US economic data.
Crude oil prices and the US-Iran conflict are set to primarily influence stock market movements this week, analysts confirm. Beyond these geopolitical factors, investors will also track key economic data and central bank commentary for further direction.
The Jackson Hole symposium will be a critical event, with investors closely monitoring comments from the US Federal Reserve Chairman. These remarks are expected to indicate the future trajectory of interest rates.
- US GDP estimates
- Durable goods orders
- Consumer confidence
Ajit Mishra, SVP, Research at Religare Broking Ltd, noted these US data points would offer crucial insights into the US economy’s strength and the Federal Reserve’s policy outlook. Domestically, he added that rupee movement, foreign institutional flows, and liquidity conditions would be tracked.
Geopolitical Tensions Persist
Crude oil remains a significant external risk factor influencing markets. The 60-day US-Iran agreement concluded without a lasting settlement, leaving the Strait of Hormuz at the center of an unresolved confrontation and normal energy flows through the region disrupted.
Ponmudi R, CEO of Enrich Money, highlighted the unresolved US-Iran conflict as a key theme for global markets this week. He stated that normal energy flows through the region are disrupted due to this situation.
FPI Inflows and Recent Market Performance
Foreign portfolio investors (FPIs) have shown accelerated buying in Indian equities this month. They infused a total of ₹23,544 crore into the market so far in August.
- BSE Sensex: declined 468.42 points, or 0.60 per cent.
- NSE Nifty: dipped 114 points, or 0.46 per cent.
After two weeks of correction, Indian equity markets, particularly the Nifty, could consolidate with a marginal recovery anticipated in the near term. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, identified Brent crude prices remaining above USD 90/barrel and geopolitical developments as key monitorables.